WTO faults US in dispute brought by China over clean energy subsidies

South China Morning PostCenter-RightEN 1 min read 100% complete by Agence France-PresseJanuary 30, 2026 at 07:11 PM

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A World Trade Organization (WTO) dispute panel has ruled against the United States in a case brought by China regarding US green energy subsidies. The dispute, initiated by China in March 2024, centered on tax credits and subsidies within the Inflation Reduction Act (IRA), a landmark US climate law signed in 2022. The WTO found these measures to be "inconsistent" with WTO agreements. China argued that the US subsidies, including investment and production tax credits for renewable energy projects and electric vehicle subsidies, created unfair competition. The United States defended the IRA as a tool to combat the climate crisis and boost US economic competitiveness. The WTO panel recommended that the US withdraw the measures.

Key Entities & Roles

Key Player Opposition Context

Washington 40% Donald Trump 50% Joe Biden ×370% Inflation Reduction Act ×270% China ×280% United States ×590% World Trade Organization ×390%

Keywords

clean energy subsidies 90% wto dispute 90% inflation reduction act 80% us 70% china 70% climate change 60% tax credits 50% trade 50% renewable energy 40%